Scentre Group and Dexus have announced a landmark joint venture, with Dexus Wholesale Shopping Centre Fund (DWSF) acquiring a 25% interest in Westfield Chermside for $683 million. The deal values the Brisbane super-regional shopping centre in line with Scentre Group’s book value at 30 June 2025 and reflects a 5.00% capitalisation rate.
The transaction is a strategic win for both parties. For Scentre Group, it represents another step in its long-term capital management strategy, while for Dexus, the acquisition enhances its flagship retail fund’s exposure to market-leading assets.
Scentre Group will continue to manage the property, leasing, and development aspects of the centre.
“We are pleased to introduce DWSF as our new joint venture partner at Westfield Chermside,” said Scentre Group CEO Elliott Rusanow. “Sourcing new capital through joint ventures continues to form a key part of the Group’s capital management strategy. The proceeds from this transaction will provide the Group with further capital to pursue our strategic objectives of creating long-term value for securityholders.”
The acquisition also reinforces Dexus’s broader strategy to co-invest alongside its funds and strengthen DWSF’s market position. In addition to the Chermside transaction, Dexus has committed a further $170 million to the fund, increasing its total investment to $300 million.
“This exclusive off-market transaction leverages our established relationship with Scentre Group to secure a market-leading asset for DWSF,” said Michael Sheffield, Executive General Manager, Funds Management at Dexus. “Dexus’s co-investment underscores its conviction in the fund’s strategy and future potential.”
Kirrily Lord, Dexus Executive General Manager, Retail, added: “Westfield Chermside’s scale, performance metrics and community integration make it an exceptional addition to our retail platform, delivering both immediate performance and long-term value creation.”
Located approximately 10 kilometres north of Brisbane’s CBD, Westfield Chermside is the second-largest regional shopping centre in Australia by both sales (MAT) and gross lettable area (GLA). It features 486 retailers, including David Jones, Myer, Apple, Sephora, Uniqlo and a range of local and international brands, as well as a strong food and leisure precinct.
In 2024, the centre attracted 17.6 million customer visits and recorded an MAT of $1.35 billion across its 176,585m2 GLA.
The strategic partnership between Scentre Group and Dexus underscores continued investor appetite for high-performing, destination retail centres and marks a significant milestone in the ongoing evolution of Australia’s retail property landscape.
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